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Wednesday, May 14, 2008

Income tax row as an extra 150,000 people move into higher rate tax bracket

Accountants claim that Mr Darling was "disingenuous" in his statement to the House of Commons because the starting point for 40 per cent tax will be lowered by twice as much as he told MPs, writes Ian Cowie

An extra 150,000 people will have to pay the top rate of income tax as a result of Alistair Darling's emergency budget, accountants calculate. Those affected are currently earning more than £34,800 a year but less than £36,000 in excess of their personal allowances

Darling admits mistakes about 10p tax

Individual tax allowance increased by £600

Hopes that they might each receive £120 a year windfalls because the Chancellor of the Exchequer announced a £600 increase in the starting point for income tax will be dashed when they see their September paypackets.

Accountants claimed that Mr Darling had been "disingenuous" in his statement to the House of Commons this week because the starting point for 40 per cent tax will be lowered by twice as much as he told MPs.